The Shanghai stock market opened higher, while the Shenzhen stock market opened lower today. Affected by positive news, such as the drawing near of a pension fund entering the stock market, both the Shanghai Composite Index and Shenzhen Component Index shook all the way up. The new property curbing policies continued exerting a negative influence on real estate stocks, resulting again in the downturn of the real estate board today.

Nevertheless, other boards performed beyond people’s expectations. Banking stocks saved the critical situation. Ping An Bank (000001, SZ) rebounded, touched the ceiling and hit a new high in the process, leading the booming tides in the two markets. Securities firm boards followed it tightly. Fang Zheng Securities (601901, SH) touched the ceiling and expanded in trading volume. Besides securities, subject shares such as medicine, Internet of things and sewage treatment performed impressively as well and shot in price one after another.

The trading volume shrank in both markets compared to yesterday.

The Shanghai Composite Index ended at 2,326.31 points, up 52.91 points or 2.33 percent. It created the largest daily increase in nearly a month. The previous largest daily rise of the index was 2.41 percent on Jan. 28, 2013. The trading volume was 116.7 billion yuan.

The Shenzhen Component Index ended 9,341.35 points, up 201.6 points or 2.21 percent. The trading volume was 106.6 billion yuan.

Analysts claimed that since the negative news of property curbing policies was not completely digested by the market, the following trend will probably be decided by the strength of the policy enforcement. Therefore, the markets are expected to shake in the short-term.

“The reason why the trading volume didn’t expand today was mainly that the upsurge of banking stocks led the rebound of hedging stocks such as the chemical board, but the real estate board was still in a stalemate,” said Wen Lijun, analyst at Nanjing Securities. “With the probable come-out of local rules, it is expected that there will be little continuity in the rally.”

She further analyzed that if the property curbing rules are enforced strictly by local governments then they will have great impact on the trend of the two markets. “If the detailed rules are mild, then the Shanghai Composite Index will likely shake between 2,200 points and 2,244 points. The detailed trend will be clear in April,” Wen said. “If the enforcement of the rules are stronger than market expectations, then the index will likely continue dipping.”